Foreign investors demand business security<\/p>\n
JAKARTA (JP): Foreign interest in investing in the country
\nappears to be returning amid signs of an improvement in the
\neconomy, but security and political worries remain the biggest
\nconcern in realizing their investment plans, according to local
\nbusinessmen.<\/p>\n
Hashim Djojohadikusumo, CEO and chairman of the Tirtamas
\nconglomerate, said on Tuesday that the interest of European
\ninvestors to invest in the country was gaining momentum.<\/p>\n
He pointed out that England's Thames Water utility firm and
\nventure capital firm Commonwealth Development Corporation (CDC)
\nwere going ahead with plans to raise their investments in
\nIndonesia.<\/p>\n
Thames Water has just secured a total of US$200 million in
\nloans to add more facilities to its water-supply project in
\nJakarta, he said.<\/p>\n
He added that CDC was also making preparations to increase its
\ninvestment especially in the country's plantation and mining
\nsectors.<\/p>\n
\"The interest of investors from Switzerland and France is also
\npositive,\" he told reporters following a shareholders meeting of
\nhis publicly listed Bank Papan Sejahtera.<\/p>\n
However, he said that the European investors were demanding
\nsecurity and safety to run businesses in the country before
\nexecuting their investment plans.<\/p>\n
\"The European investors are very concerned about the security
\nsituation,\" he said.<\/p>\n
Hashim is the government's special envoy with a mission to
\nentice European investors to return to the crisis-hit country,
\nwhich went through bloody political and social rioting in May
\nleading to the downfall of former president Soeharto.<\/p>\n
He explained that the foreign investors were very concerned
\nabout the recent killings in East Java, and rampant lootings
\nparticularly in the plantation sector.<\/p>\n
\"The government has to be resolute in restoring order and
\nsecurity. Stop talking, start some action,\" he said.<\/p>\n
Businessman Edward Soeryadjaya, the former co-owner of the
\ngiant auto manufacturer PT Astra International, agreed that the
\ninterest of foreign businesspeople in the country was increasing.<\/p>\n
\"But they will only start making investments if there is
\npolitical certainty,\" he said.<\/p>\n
\"One measure of political certainty is a transparent and
\nsuccessful general election. This will be very positive,\" he
\nadded.<\/p>\n
The country is scheduled to hold a general election either in
\nMay or June 1999. Over 90 political parties have so far
\nregistered to contest in the election, a marked difference to the
\npast election where only three government-sanctioned political
\nparties, all virtually controlled by Soeharto, were allowed to
\ncontest.<\/p>\n
\"There's hope that investments will start to flow back after
\nthe general election,\" Edward said.<\/p>\n
He also said that the government should start lowering the
\ncurrent punitive interest rates in the wake of the considerable
\nstrengthening of the rate of the rupiah against the U.S. dollar.<\/p>\n
\"Under the current high interest rate environment (55 percent
\nto 65 percent) no business can run normally, except those engaged
\nin speculative activities,\" he said.<\/p>\n
The rupiah has appreciated by around 40 percent since late
\nlast month, closing at Rp 7,400 to the dollar on Tuesday.<\/p>\n
The significant appreciation in the currency is seen as a sign
\ntoward a recovery in the economy. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investors-demand-business-security-1447893297",
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